Real Estate Crash thread

[XXX-er]

back when Coke was still cool, in aspen if you turned your bread plate over upside down it was code for the waiter that you wished to make a purchase

[liv2ski]

Wait, coke isn't still cool?

[PNWbrit]

Wait, coke isn't still cool?

We have pepsi...

[dunfree]

I think think the UK system had a lot going for it. Negotiable commission for sellers agent (average nationally is 1.18%) no buyers agent. Buyer and seller pay attorneys to deal with the conveyance. For a normal transaction without any undue complications this would cost each $500-$1000

not the Aussie system? Doing most sales by auction really changes the market.

[liv2ski]

not the Aussie system? Doing most sales by auction really changes the market.

I can not imagine that is how they sell property as the sellers could get deficiency judgements if the property sells for less than is owed.

[Woolly the Mammoth]

Wait, coke isn't still cool?

it’s got fentanyl in it now.


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[Garbowski]

it’s got fentanyl in it now.

My extremely overvalued dump in Seattle gives me a front row, and fentanyl ain't cool.

[RootSkier]

I can not imagine that is how they sell property as the sellers could get deficiency judgements if the property sells for less than is owed.

Reserve prices in auctions...how do they work?

[frorider]

Reserve prices in auctions...how do they work?

Lol. Here’s an article with stats on the relative popularity of auctions in Oz. https://www.abc.net.au/news/2023-07-...dney/102549152

My anecdotal recollection was that they were pretty stressful for all involved due to the compressed time period but more transparent than the quasi-auctions in the US in which one relies on the buying agent for intel on what new offer to make etc.

[RoooR]

not the Aussie system? Doing most sales by auction really changes the market.

Both Australia and the UK have worse housing affordability than the USA.

https://www.forbes.com/advisor/au/pr...#39;s%20115%25.

"One measure of affordability is the household debt-to-income ratio. Australia’s housing sector is burdened by some of the highest debt levels in the world, with a household debt-to-income ratio of 211%, more than double the 101% in the US and far higher than the UK’s 148% and Japan’s 115%."

[XXX-er]

it’s got fentanyl in it now.


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coke was the party drug of the moneyied set ( not me ) in the 80's

nowdays pretty much everything might have Fentynal in it

[JaytaeMoney]

Isn’t the training requirement to become a realtor less rigorous than a CPA? (Not certain.)

I got a good belly laugh from this, thank you

[dunfree]

Both Australia and the UK have worse housing affordability than the USA.

https://www.forbes.com/advisor/au/pr...#39;s%20115%25.

"One measure of affordability is the household debt-to-income ratio. Australia’s housing sector is burdened by some of the highest debt levels in the world, with a household debt-to-income ratio of 211%, more than double the 101% in the US and far higher than the UK’s 148% and Japan’s 115%."

Other than they share a language and a monarch it’s hard to seethe relevance of this factoid. ex-London/SE the UK picture changes; there’s not much in Oz outside the major urban areas

[PNWbrit]

not the Aussie system? Doing most sales by auction really changes the market.

Interesting I wasn't aware of that.

Over about a four-week period leading up to the auction, interested house-hunters can schedule visits and inspections on the home in order to prepare their bids.

Then on bidding day, typically a Saturday, interested buyers gather on the sidewalk outside the home and place their bids out in the open, in an auction led by the seller's agent.

The process usually lasts about 10 to 15 minutes and the spectacle often attracts an audience who just come by to watch. It's not uncommon for house-hunters to attend multiple auctions in one day, quickly moving onto the next property on their list if they fail to win a home.

[liv2ski]

Huh, that's pretty cool

[PNWbrit]

Other than they share a language and a monarch it’s hard to seethe relevance of this factoid. ex-London/SE the UK picture changes; there’s not much in Oz outside the major urban areas

The very next paragraph after the one he quoted...

However, economists caution against a simple comparison of these metrics, given that some of them don’t consider the varying government and institutional ownership of different housing markets and the wide variation of interest rates in different countries.

[Ted Striker]

Can't remember the name but there was a reality show about Aussie RE auctions. Lots of anger and tears on the sidewalk.

[mud]

That's been happening here for awhile, John Steinbeck wrote a book, Willy started Farm Aid.
https://www.farmaid.org/

[liv2ski]

Hey Joe, a good idea from France...

The difficulty people face in buying a home may be one explanation for the lack of rentals available.

To try and tackle the issue, the French government will extend its 0% interest rate loans for low-income families and will open it up to more people next year to help them get on the property ladder.

[RoooR]

Hey Joe, a good idea from France...

The difficulty people face in buying a home may be one explanation for the lack of rentals available.

To try and tackle the issue, the French government will extend its 0% interest rate loans for low-income families and will open it up to more people next year to help them get on the property ladder.

What safeguards are in place to prevent these loans from leading to a housing bubble, similar to what has been observed in other economies with easy lending practices?

Could the extension of these loans lead to an increase in speculative buying, and if so, how could that be mitigated?

How will the government address the risk of homeowners defaulting on their mortgages if there is an economic downturn or if their financial circumstances change?

[liv2ski]

What safeguards are in place to prevent these loans from leading to a housing bubble, similar to what has been observed in other economies with easy lending practices?

Could the extension of these loans lead to an increase in speculative buying, and if so, how could that be mitigated?

How will the government address the risk of homeowners defaulting on their mortgages if there is an economic downturn or if their financial circumstances change?

From my experience in 39 years of loan origination, very few low income people can find a home cheap enough to qualify for, hence not many of those loans are originated.

These are owner occ loans, not for rentals.

The same as any other loan. Use standards underwriting guidelines and hope everyone isn't laid off.

[RoooR]

The same as any other loan. Use standards underwriting guidelines and hope everyone isn't laid off.

Doesn't the suggestion to make loans at far below the market rate suggest a complete abandoning of underwriting standards? When I think of the government backing loans at below market rates it makes me thing of 1980's S&L crisis, 1980's Japan Bubble, 2000's Subprime, and the 1997 East Asian financial crisis. Are there examples of it actually working out you can think of or will US taxpayers just be on the hook (again.)

[liv2ski]

Doesn't the suggestion to make loans at far below the market rate suggest a complete abandoning of underwriting standards? When I think of the government backing loans at below market rates it makes me thing of 1980's S&L crisis, 1980's Japan Bubble, 2000's Subprime, and the 1997 East Asian financial crisis. Are there examples of it actually working out you can think of or will US taxpayers just be on the hook (again.)

Why such a goofy comment? Everything is underwrited exactly the same, just one loan has a lower PITI that helps the buyers qualify for more than at 7.5%.
Your examples are way off base, but whatever. You do you.

[Brock Landers]

What safeguards are in place to prevent these loans from leading to a housing bubble, similar to what has been observed in other economies with easy lending practices?

Housing bubble? Getting a few thousand or million low income families into home ownership- they still have to pay off the loan, make payments, have legit income. I’ll take the bubble if it means people get in houses. And if you do it right…it isn’t a bubble anyway!

Who gives a shit about a housing bubble anyway.

[snapt]

Credit Union rep just called me. We’ve been preapproved for an FHA first time home buyer loan for some time while shopping around. The credit union has immediately suspended the program until further notice. Bumps my rate from 6.5 to 7.5+. Pretty awesome.